A report about the real estate trends for 2016 has been released by Pricewaterhouse Coopers and the Urban Land Institute on Wednesday.
According to constructiondive.com, commercial real estate will soon be dominated by small- scale building firms as companies with less than 50 employees surpass the growth of large- scale construction firms.
Mitch Roschelle, a partner at PwC, said "The real estate industry's traditional focus on big cities and large employers is shifting significantly as small businesses emerge as the growth engine for the U.S. economy. This is creating disruption in the office sector as it finds ways to create new space models to accommodate these employers."
The trend report is the result of varius interviews and surveys with different real estate professionals and firms. Below are some of the top real estate trend for 2016 according to Pricewaterhouse Coopers and the Urban Land Institute's report.
1. Real estate industry will see success in "18- hour cities"
- "18- hour cities" are the place known as secondary market. Several reports have shown that these secondary market are starting to gain momentum as real estate investors are turning their gazes to these markets. These market entice investors for it can offer the same urban amenities a company requires but for a cheaper price. These secondary markets are San Antonio, Denver, Austin and the like.
2. Office sector will continue to grow
- As the number of employees grow, so as the office buildings needed to house the business. Also, expansion of companies from different industries open an opportunity for real estate investors selling or leasing office spaces to gain more profit. Laos, redesigning office spaces is becoming part of the company's way of introducing their brand resulting to renovations and acquiring new spaces to better suit their business.
3. Suburban properties are making a comeback
- For years, acquiring properties or investing in suburbs has been feared by the investors as lack of market might kill off their business. However, recent reports showed that millennials are starting to look into living in suburbs to take a major life step of having a family. Developers are now looking into offer features that will both benefit the urban and suburban areas of a certain town. This includes mixed used properties and transit- oriented real estates.
4. Food production in urban areas
- People in cities are starting to look into having access to fresh food which made the use of urban property to produce food has becoming a trend nowadays. One example of this is the three hydroponic operations in Brooklyn and Queens that produce more than 300 tons of vegetables. The report also said "Just as the reinvention of the suburbs is an emergent story for the decade ahead, so is the creative adaptation of inner-city uses."
The report also detailed other trend that might be a trend though some of it are still going through extensive observation and research to fully identify if these trends are going to change the face of real estate industry.
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